As we approach back-to-school time, 16 states across the country will be holding sales tax holidays this year. The folks over at the TaxFoundation put together a comprehensive list of states (and their criteria) participating in this potential sales bonanza. Love it or hate it, if you live in or near one of these states you might take notice. Be sure to look at the entire list.
“At first glance, sales tax holidays seem like great policy. They enjoy broad political support, with backers arguing that holidays are a highly visible form of tax cuts and provide benefits to low-income consumers. Politicians and other supporters routinely claim that sales tax holidays improve sales for retailers, create jobs, and promote economic growth…..[however]……They represent a real cost for businesses without providing substantial benefits. They are also an inefficient means of helping low-income consumers and an ineffective means of providing savings to consumers.”